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Please help ACG2071 -Spring 2018-Exam 3- Professor Lionel Suarez Section 1-50 Points Hialeah Fountain Company (makes the best front yard fountains for homes in Hialeah
Please help ACG2071 -Spring 2018-Exam 3- Professor Lionel Suarez Section 1-50 Points Hialeah Fountain Company (makes the best front yard fountains for homes in Hialeah - homes in which the front yard is completely paved over) is thinking about replacing a machine that has been used in its factory for four years. Data for the operations of the old machine and new machine, neither of which has a residual value, are: Old Machine Cost of machine, 10-year life Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation Annual nonmanufacturing operating expenses Annual revenue Current estimated selling price of machine $91,000 9,900 24,200 5,500 71,500 31,700 New Machine Purchase price of machine, six-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, excluding depreciation Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. $119,500 19,425 7,200 Instructions Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine Alternative 2). The analysis should indicate the total differential income that vould result over the six-year period if the new machine is acquired. ist other factors that should be considered before a final decision is reached
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